Strategy

Workers across the value chain

[S2 SBM-3 10a]

The widespread problem of insufficient monitoring of suppliers may contribute to actual or potential adverse impacts on value chain workers. Acknowledging potential adverse impacts of sourcing on value chain workers, Lenzing implements a sustainable sourcing strategy.

[S2 SBM-3 11a ii, 11a iii]

Lenzing’s value chain includes a diverse range of workers who could be materially impacted. Upstream, this includes foresters, loggers, wood and pulp suppliers, chemical suppliers and workers in transportation and logistics.

Downstream, it covers textile and nonwovens value chain workers, including garment makers, retail and distribution staff, as well as those involved in waste management and logistics.

Vulnerable groups and geographic exposure

[S2 SBM-3 11a v, 11b, 11c, 11c i, 12]

Lenzing recognizes that certain vulnerable groups – such as migrant workers, women, young workers and ethnic minorities – are particularly at risk of child and forced labor in contexts where socioeconomic vulnerabilities, weak labor law enforcement and complex supply chains prevail. Given its chemical and forestry sourcing and garment production, the company acknowledges an elevated potential for such systemic negative impacts in Asia, South America, Central America and the Caribbean, Eastern Europe and Eurasia.

[S2 SBM-3 11, 11a v, 11c i]

Lenzing continues to improve and assess its upstream and downstream impacts with a focus on responsible practices and due diligence in relevant value chain steps where Lenzing has direct influence. At this stage, detailed data on specific vulnerable groups or systemic impacts is still being collected.

Lenzing’s approach is aligned with international standards and incorporates risk analysis and double materiality considerations into strategic decision-making. The company’s strategy includes continuous improvement of due diligence processes, stakeholder engagement, and the implementation of responsible sourcing and labor practices.